The Ministry of Finance said that it “partially supported” the proposal, but added that it should be further considered.
Russia’s Federal Tax Service (FTS) has entered the discussion over cryptocurrency legislation in the country with an unusually direct proposal: to allow Russian businesses to utilise digital currencies as a payment method when interacting overseas.
According to local newspaper Izvestia, the FTS provided official feedback on the draught cryptocurrency bill prepared by the Ministry of Finance on Wednesday. The fiscal agency proposed in its remarks that Russian businesses be permitted to use cryptocurrency for certain operations:
“To enable corporate organisations to pay for products and services in accordance with international trade agreements, as well as to receive income from foreign entities in digital money.”
The project has the potential to radically change the ethos of the planned framework, which previously prohibited digital currencies from serving any purpose other than as investment assets. According to Izvestia, the current draught contains a clause that states that the prohibition on using cryptocurrency as a payment method applies “in all cases where this law does not specify otherwise.”
The FTS proposed acting on this reservation in order to diversify payment options available to Russian companies engaged in international trade in light of the country’s severe financial sanctions.
Additionally, the FTS reportedly stated that businesses would be required to purchase and sell digital currencies through regulated cryptocurrency wallets and exchange platforms.
The Ministry of Finance responded to the FTS’ feedback letter with a “partially support,” stressing that the subject warrants additional analysis and debate.
On April 8, the Russian Ministry of Finance prepared the draught law titled “On Digital Currency” (affectionately referred to as the “crypto bill”) and sent it to the Cabinet for approval. A week later, the head of Russia’s Chamber of Commerce and Industry urged African nations to collaborate in order to facilitate cross-border transactions in crypto and central bank digital currencies (CBDCs).